Recession no barrier to firms' support for charity

Businesses are continuing to support charities, despite the downturn. Photo: James Bass

Surviving in a recession may itself be a challenge, but the city's businesses are sharing in the Christmas spirit and continuing to dig deep to support good causes. SAM WILLIAMS reports.



Income may have fallen and profits been squeezed, but the region's businesses are continuing to reach into their pockets for good causes despite the recession, according to research.

And charity chiefs say next year could see a rise in donations as companies anticipate improved trading.

While nationally the amount given to charity generally has suffered in the downturn, with donations down from £11.2bn in 2007/08 to £9.9bn last year, a survey by Barclays last month found more than half (52pc) of small firms in Norwich are still doing their bit for good causes.

Although in most cases the amount given had fallen, the poll found with 34pc of those questioned in the city the sums had remained the same - and in 4pc of cases had gone up.

And anecdotal evidence also suggests some larger firms are continuing to support charities, while others hit by the recession are planning to make donations next year.

Graham Tuttle, director of the Norfolk Community Foundation. Photo: Bill Smith

Graham Tuttle, who took over as director of Norfolk Community Foundation six months ago, said he has a number of meetings scheduled for next year with companies that have been unable to give this year but are hoping to start in 2010.

The organisation awards grants to a broad range of grass roots projects and good causes in Norfolk.

In last month's newsletter, the foundation revealed funding to help people with learning difficulties, disabilities, a scheme offering mentoring to prisoners to help them fit back into society and for a play area.

Mr Tuttle said a number of major firms had started new funds with the charity, including a £300,000 national community fund by Trowse-based infrastructure firm May Gurney, called the May Gurney Foundation, and a fund unveiled by turkey farmer Bernard Matthews.

Mr Tuttle said: “The foundation has been very successful working with businesses, particularly in the past six months, and a number of firms have created new funds, and we are very close to a number of new deals.

“There has been a change in focus and companies want to engage at a much more grass roots level, and want staff committees to be highly engaged in how the money is spent.

“Nationally there has been a dramatic decrease in money available to grass roots organisations, and people nationally are giving less to charity.

Chris Dicker, former senior partner at Lovewell Blake.

“Because of this the foundation has been trying to identify businesses and individuals that are looking to engage in grass roots giving.

“Some companies have been reluctant to make commitments this year, but almost without exception they have said come back in 2010.”

The foundation has raised about £800,000 for good causes this year, with about £300,000 of that from businesses.

And Mr Tuttle, formerly of finance firm Marsh, said while charity giving could make a real difference in the community, there were also good business reasons for donating cash.

He added: “With many companies they have a sense that they want to put something back for philanthropic reasons, but it also offers good news opportunities that raise the company's profile locally.”

And Neil Fewtrell, head of Barclays local business, Eastern, said the survey showed small firms were continuing to play their part in supporting charities.

He said: “The recession provided a powerful incentive to take an axe to the non-essentials - but that hasn't happened with support for charities.

PricewaterhouseCoopers staff during the store wars challenge at Barnardo's, Thorpe Road, Norwich

“The research shows that over half of local businesses see their charity work as a responsibility to the community, not a result of boom time generosity, and they can't and won't walk away from it. At a grassroots level they are an army working to better our society.

"In this one area the recession hasn't had a huge impact. The amount of money donated by local businesses has remained pretty constant, whether the business feels it's recovering from the recession or not. One of the industries with the toughest image, construction, is also one of the most generous, with around 61pc helping local charities."

Stuart Etherington, chief executive of the National Council for Voluntary Organisations, said businesses have a key part to play in helping local people.

He said: "It is imperative that companies across the country are responsible and play a role in their local community.

“It is therefore good to see that, despite the recession, they continue to recognise the vital contribution that voluntary and community organisations make across the UK in transforming local areas."





Case studies



Firm raises £150,000 for 150th anniversary

When city accountancy firm Lovewell Blake reached its 150th anniversary last year, rather than throwing a party bosses decided a better way to celebrate would be to raise £150,000 for good causes.

And towards the end of the second year in the five-year project, the company is ahead of its target, having raised about £65,000.

The donations have been handled by the Norfolk Community Foundation, which distributes grants to a wide range of good causes across the county.

Recent projects to have benefited from cash raised by Lovewell Blake include Attleborough Amateur Boxing Club, which received £1,000 for new equipment, Blundeston Cricket Club, which got £2,000 to help its relocation to Somerleyton, and Harleston Information Plus, a one-stop shop for information, which holds a monthly carers' group and over-60s club.

Under the scheme, the company's partners provide the first £10,000 each year, and if staff raise another £10,000 the partners will add a further £10,000.

Chris Dicker, former senior partner at the firm, who helped oversee the project, said: “We have been part of the community for such a long time and because of this we need to be seen to be giving something back to the area.

“We have been a successful firm, and corporate social responsibility is still a key buzz word. Although in a recession it has probably taken a back seat we think it is very important. Getting staff involved in community projects is also really beneficial.”



Accountants' takeover of city charity shop

A team of accountants took over a charity shop for a day last week as part of a national drive to raise money for children's charity Barnado's UK.

Staff from the Norwich office of PricewaterhouseCoopers managed the charity's Pound Lane store in Thorpe St Andrew last Thursday, in the Barnardo's Store Wars challenge, with 20 PwC teams nationally competing to raise as much as possible on the day.

The Norwich team managed £6,300, through a raffle and auction, with gifts donated by local businesses.

Chris Maw, Norwich office senior partner, said: “We were very happy to get involved in light of our charitable focus on young people, and the commitment Barnado's gave that anything we raised in this region would stay in this region.

“It was consistent with our charitable aims and it was a great experience for our staff.”



Virgin Money's online fundraising service

Virgin Money has launched a not-for-profit online charity fundraising service in a bid to increase the amount of money going to good causes.

The Norwich firm unveiled Virgin Money Giving in October, which has been backed by hundreds of charities.

Virgin Money, part of Sir Richard Branson's Virgin empire, is also the official partner of the London marathon for the next five years, over which time Sir Richard hopes to raise £250m in sponsorship for good causes.

The Virgin Money Giving scheme is free for fundraisers, charges a fee of £100 plus VAT and a 2pc fee on all donations before Gift Aid, which means for every £10 donation charities will receive £12.46.



Archant Gold

Evening News publisher Archant has given approximately £10,000 to good causes in the past year through its match funding scheme, Archant Gold.

Through the scheme, any charity sponsorship raised by Archant staff will be matched pound for pound by the company, up to a maximum of £3,000 a time.

The company has a budget of £10,000 every six months to meet demand. A charity committee at Archant also meets regularly to consider other charitable donations.